Junichi Makino News
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Haruhiko Kuroda yesterday followed in the footsteps of Ben S. Bernanke and Mario Draghi as he swung the Bank of Japan from incremental moves to unprecedented stimulus in his first policy meeting as governor.
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Japanese Prime Minister Naoto Kan ’s policies to contain a record public debt and prevent the yen’s surge may help the nation avert a selloff of bonds and stocks, according to Daiwa Institute of Research Ltd.
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Japan, Thailand’s biggest foreign investor, may also be the largest overseas economic victim of record floods forcing companies including Toyota Motor Co., Hitachi Ltd. and Canon Inc. to halt output in the country.
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Prime Minister Yoshihiko Noda’s decision to call an election in December may inhibit the government’s ability to stimulate an economy that’s sliding toward its third recession in four years.
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The yen was near an eight-week low against the euro on speculation the Bank of Japan will add to monetary easing efforts at its meeting next week to bolster the nation’s recovery.
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Japanese bonds fell, sending 10-year yields to a six-month high, as signs the worldwide economic recovery is gaining momentum curbed demand for safer assets.
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Japanese bonds completed a second weekly loss as U.S. policy makers mulled whether another round of debt purchases was necessary, reducing pressure on the Bank of Japan to ease monetary policy further.
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The euro rose to a one-week high against the yen before reports that economists said will show German prices and consumer confidence rose.
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Thailand’s worst floods in more than 50 years may drag down full-year profits of listed Japanese non- financial companies by 3.9 percent as production and operations are impacted, said to SMBC Nikko Securities Inc.
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Japanese government bonds fell for a second week as U.S. policy makers mulled whether another round of debt purchases was necessary, reducing pressure on the Bank of Japan to ease monetary policy further.
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